turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

jzent
New Member

If we got a 2020 refund and IRS website says owed balance of $0, do we still owe deferred self-employment taxes (CARES act) if sched 3 line 12e lists an amount?

Schedule 3 Line 12e lists $36 and TurboTax sent us an email saying we should have paid 1/2 of that by Dec. 31...but IRS website says we don't owe them any money and we got a refund last year.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies

If we got a 2020 refund and IRS website says owed balance of $0, do we still owe deferred self-employment taxes (CARES act) if sched 3 line 12e lists an amount?

YES....you need to pay that.

 

The zero balance on the IRS website only refers to "Income" taxes that may have been due, and do not refer to any SS/Medicare taxes taht were deferred.

________________________________

Instructions on paying are also here...read closely on how to make sure they get allocated properly:

How self-employed individuals and household employers repay deferred Social Security tax | Internal ...

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

If we got a 2020 refund and IRS website says owed balance of $0, do we still owe deferred self-employment taxes (CARES act) if sched 3 line 12e lists an amount?

Ok ... if you deferred any of the SS payments you could NOT have had refund on your tax return  ... so did the IRS reduce your refund by $36 (or $72) ?   If so the deferment was satisfied and no payment request was sent from the IRS and you can ignore the TT warnings.

jzent
New Member

If we got a 2020 refund and IRS website says owed balance of $0, do we still owe deferred self-employment taxes (CARES act) if sched 3 line 12e lists an amount?

Weirdly, looking through all the pages of my taxes, it looks like it was added TO the refund, not subtracted from it, so I'm assuming I do need to go pay it. The whole situation isn't very user friendly.

ThomasM125
Expert Alumni

If we got a 2020 refund and IRS website says owed balance of $0, do we still owe deferred self-employment taxes (CARES act) if sched 3 line 12e lists an amount?

Your self-employment tax was first added to your income tax on line 23 of your form 1040. Then, on line 31 the deferred portion of it was added to your refund, that is where you got credit for it. It was used to reduce your total tax on your tax return, thus increasing your refund, so you do need to pay it back.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies